Thailand’s conservative Thai Pakdee Party wants to scrap ฿500 and ฿1,000 notes to fight corruption, target illicit cash flows, punish embezzlers with death sentences, and disrupt underground networks affecting locals and tourists nationwide.
Thailand’s arch-conservative Thai Pakdee on Friday called for abolishing the ฿1,000 and ฿500 notes to combat corruption and illicit money flows. Party leader Warong Dechgitvigrom also demanded the death penalty for anyone convicted of embezzling over ฿100 million. He insisted such sentences be carried out within 15 days, with no appeals or royal pardons. The move comes as the kingdom’s financial chiefs struggle with a rapidly appreciating baht, widely suspected to be linked to illicit money flows and money laundering. The policy could also create problems for foreign tourists, who rely heavily on these large currency notes while in the kingdom.
Thailand’s Thai Pakdee Party announced on Friday, December 26, plans to cancel 500 and 1,000 baht banknotes nationwide. The party said the move targets corruption and underground financial networks. Warong Dechgitvigrom, party leader, made the announcement via Facebook. He said high-denomination notes are used to hide illegal cash.
According to Warong, cancelling the notes would limit corrupt networks’ ability to store and transfer untraceable money. Furthermore, he claimed that cash payments remain difficult to monitor compared with digital transfers.
Bribes, campaign contributions, and state contract kickbacks are frequently paid in large cash denominations, he said. In addition, some politicians reportedly store large amounts of cash in secret home rooms. One past case involved hundreds of boxes of ฿1,000 notes at a former highways department director-general’s residence.
Thai Pakdee Party unveils plan to scrap 500 and 1,000 baht notes to fight corruption nationwide
Warong also proposed harsher legal penalties for financial crimes. Specifically, he suggested the death penalty for embezzlement over ฿100 million, with mandatory execution within 15 days. He added that convicted individuals would not be eligible for royal pardons.
Furthermore, Warong advocated for citizens to have the right to file lawsuits against corrupt officials and receive monetary rewards for successful prosecutions.
The policy would not impact most citizens, Warong said. Digital banking now dominates everyday transactions. Nevertheless, smaller denominations of 100, 50, and 20 baht notes would remain available for elderly or cash-dependent individuals. Additionally, large cash deposits would require a declaration of their sources. Authorities would collect any applicable taxes.
Thailand continues to rely heavily on cash. At least 60% of transactions remain cash-based, according to government estimates. However, cash usage has declined steadily over recent years.
Despite digital growth, cash still dominates at least 60 per cent of Thailand’s everyday transactions
A 2023 Bank of Thailand report indicated that 66% of total transactions by volume were cash. Mobile and internet banking accounted for 28%, e-wallets 2.5%, debit cards 2%, and credit cards 1%. By contrast, early 2024 reports suggested more than 80% of transactions were still conducted in cash. At points of sale, 46% of payments relied on cash. For comparison, in 2017, around 93% of all transactions were cash-based.
The data shows a fierce determination among Thais to stick with cash. This comes despite the successful take-up of new payment systems. Thailand’s digital payment adoption is high. Approximately 96% of Thais use mobile banking applications, the highest rate in Southeast Asia.
Nevertheless, cash remains dominant in small, daily transactions, particularly in rural and informal sectors. In addition, online channels account for only 10-15% of total retail transactions. Cash-on-delivery represents about 8% of e-commerce purchases.
The Thai Pakdee Party’s announcement comes amid economic challenges. The Thai baht surged 7% between November 24 and December 24. No agency has fully explained the rapid appreciation. Some analysts link the rise to money laundering and increased gold purchases. Rising gold prices may also have contributed to the baht’s strength.
Baht surges seven per cent amid concerns over gold trade and potential illicit money flows in Thailand
Meanwhile, Thailand posted significant trade deficits. October recorded a deficit of $3.4 billion. November’s deficit was $2.72 billion. Foreign tourism remains below 2024 levels. The baht’s rise has affected both exports and imports, adding pressure to economic forecasts.
Most foreign tourists in Thailand continue to use cash. Even when credit cards or cashless systems are available, they usually pay in 500 or 1,000 baht notes. Large-denomination notes remain central to daily transactions, especially for high-value purchases.
According to Warong, high-denomination notes facilitate underground networks. He noted that cash is often moved through multiple accounts before being converted into physical currency. Furthermore, he said this method hides financial activity from authorities.
Digital payments are increasing but unevenly adopted. Rural areas and small vendors still rely heavily on cash. Older citizens adjust to digital methods more slowly. Street markets, small shops, and informal sectors continue to operate almost entirely on cash.
Thailand’s high-denomination notes remain essential for commerce and illicit network operations
The policy is expected to be implemented within three months, Warong said. Large cash deposits would require an official declaration. Authorities would monitor these deposits and collect taxes. Banks, merchants, and the central bank would need to coordinate the rollout.
Experts note that removing 500 and 1,000 baht notes would disrupt high-value cash flows. It could also reduce the capacity of underground networks to operate without detection. The circulation of large cash sums would become more controlled and traceable.
Thailand’s financial landscape remains complex.
Thailand’s unbanked population remains large. In 2022, 63% of adults did not hold bank accounts. Cash continues to be the main method of payment for both local residents and foreign visitors. The country’s economy remains very much cash-driven.
Cash dominates Thai economy as the unbanked population and small transactions depend on it
The Thai Pakdee Party said cancelling high-denomination notes forms part of a broader anti-corruption strategy. They aim to limit cash-based illicit activity and increase transparency in financial transactions. Enforcement measures include monitoring large deposits, collecting taxes on them and tracking cash withdrawals.
The move would likely affect both domestic and foreign financial behaviour. Tourists would need to adapt to smaller denominations. Businesses handling high-value transactions would also need to adjust. The party argues that smaller denominations, digital payments and banking services provide sufficient alternatives.
The Thai Pakdee Party’s plan is among the most significant policy interventions targeting cash circulation in recent years. Government coordination would be required for successful implementation. Furthermore, public communication will be essential to prevent disruption in cash-based transactions.
Thailand faces multiple economic pressures. The baht’s rapid rise, combined with trade deficits and weaker tourism, has challenged financial stability.
The conservative party advocates removing high-denomination notes would reduce corruption while allowing the economy to continue operating with cash and digital alternatives.
Pakdee Party cash note plan aims to reduce corruption while adjusting Thailand’s economy
Cash, in the meantime, remains central to Thailand’s economy. Despite growing digital adoption, large-denomination notes are heavily used. The Pakdee Party’s proposal to scrap 500 and 1,000 baht notes, designed to disrupt underground financial networks, would certainly hinder commerce.
At the same time, the party’s claims that smaller denominations and digital payment systems would support legitimate transactions are likely to be questioned by business interests.
Of course, it is unlikely the proposal will be implemented. Such a move would require ordinary people to carry vast amounts of small currency bills to conduct fraud or cash-based transactions. It would also pose a problem for foreign tourists in the kingdom. Of course, it would be theoretically possible, but undoubtedly inconvenient. Certainly, for people who either prefer to or have to use cash.
Crisis for Thailand as baht rockets in value putting exports and foreign tourism under further pressure
Former minister and party leader Sudarat warns of ฿20 billion plot by ‘Scambodia’ to take political power
In the meantime, Thailand’s financial agencies are busy tracking the forces behind the rising baht. This involves the Securities and Exchange Commission (SEC), the Bank of Thailand, the Anti-Money Laundering Office (AMLO) and the Ministry of Finance. A key focus right now is the gold trade.
Nevertheless, the Royal Thai Police have consistently identified smaller bank account holders or “mules” linked to the exploits of scammers and illicit operators. This certainly suggests that cash plays a key role in the operations of illegal networks.
That such a policy proposal should be made by a well-established political party highlights the scale and nature of the problem currently facing Thailand.
Join the Thai News forum, follow Thai Examiner on Facebook here
Receive all our stories as they come out on Telegram here
Follow Thai Examiner here
Further reading:
Rates cut to 1.25% as damaged economy limps on to the end of 2025 with even stiffer headwinds ahead
Ex Energy Minister supports oil and arms supplies blockade against Cambodia in the Gulf of Thailand
War to continue says PM Anutin. Dismisses President Trump’s ceasefire talk as a ‘misunderstanding’
Confusion after Trump’s 20 minute phone call with PM Anutin. US side claimed a ceasefire was agreed
